Senator Adam Schiff, a Democrat from California, is calling for a formal investigation into potential insider trading tied to the Trump administration. The demand follows a sharp stock market rally that coincides with President Donald Trump’s announcement of a 90-day pause on most tariffs. The pause excludes Chinese imports, which were hit with an increased tariff of 125%.
On the morning of April 9, 2025, just minutes after markets opened, President Trump posted on his social media platform, Truth Social, writing, “THIS IS A GREAT TIME TO BUY!!! DJT.” While the post appeared to be a general show of confidence in the economy, “DJT” is also the ticker symbol for Trump Media & Technology Group, his own publicly traded company. Later that same day, Trump announced the temporary suspension of many tariffs, a policy shift that had not been publicly disclosed beforehand.
The timing of the post and the market surge that followed has raised red flags for Schiff and other Democratic lawmakers. They have sent a formal letter to the White House requesting detailed information about whether anyone in the administration, or in Trump’s inner circle, executed stock trades or financial transactions based on advance knowledge of the tariff announcement. Schiff says he has also spoken with whistleblowers who are concerned about possible unethical conduct related to the decision.
In a press statement, Schiff notes that the combination of the president’s public remarks and the resulting gains in the stock market demand scrutiny. The S&P 500 soared over 9% by the end of the trading day, while individual tech and media stocks—especially Trump-affiliated DJT—saw substantial increases. Schiff argues that if anyone knowingly profited off information before it became public, it would be a clear breach of federal securities law.
Watch here: https://youtu.be/HosuKwVacJU
The White House has pushed back strongly against the accusations. A spokesperson for the administration calls the claims “partisan games” and says the President was simply trying to offer reassurance amid economic turbulence. Treasury Secretary Scott Bessent stated the pause was driven by global requests to reopen trade talks, while Trump himself told reporters the idea came to him the same morning he made the announcement, adding to the uncertainty around who may have known in advance.
Legal analysts note that proving insider trading in this case would require definitive evidence that individuals acted on confidential government information before it was made public. However, the incident has revived broader questions about the intersection of policymaking, financial markets, and the personal business interests of public officials.
As Congress begins to review the timeline and financial activity surrounding the tariff pause, the inquiry is likely to add new friction to the already contentious relationship between Trump and Democratic lawmakers. Schiff has vowed to pursue the matter aggressively, framing it as a test of accountability in government and the ethical standards of public service.
Source Links:
https://www.businessinsider.com/schiff-white-house-profit-from-trump-tariff-pause-2025-4
https://time.com/7276234/trump-tariff-insider-trading-schiff
https://www.theguardian.com/us-news/2025/apr/10/donald-trump-ignites-insider-trading-accusations-after-global-tariffs-u-turn
https://www.foxnews.com/politics/wh-slams-dems-partisan-games-after-trump-foe-schiff-calls-insider-trading-investigation-over-tariffs
https://abcnews.go.com/Politics/democratic-senators-call-probe-insider-trading-trump-tariff/story?id=120679375
https://apnews.com/article/trump-truth-social-djt-tesla-musk-tariffs-pause-fccfa6b06c8f1ec0cd7844641ca52669
https://youtu.be/HosuKwVacJU
